Business Insights Guide

Business Insights

Introduction

This is designed to help HR professionals of all levels advance their knowledge in Business Insights. Leading HR groups such as i4cp, Gartner and HR Certification Institute (HRCI) all agree that a critical competency for HR professionals is Business Insights (sometimes called Business Acumen). It is designed to pair HRCI’s framework of business knowledge with reflection and BorgWarner content that allow you to develop your BorgWarner HR Business Insights!

Remember, when you see this symbol….

Example link

…there are linked resources!

Table of Contents

✓ Introduction • Get Started • Module 1: Business Environment • Module 2: Business Elements • Module 3: Business Competition • Module 4: Business Stakeholders • Module 5: Financial Management • Closing

Click to go deeper

Frequently Asked

What is Business Insights?

Business insights is the ability to apply knowledge of business and the marketplace to advance the organization’s goals.

For HR professionals, that means understanding the business, customers, products and financials of our operations and using that insight to apply it to Human Resources strategies, policies and practices.

What does this mean for HR?

• Knows how businesses work and how organizations make money; and the relationship between financial performance and talent decisions • Keeps up with current and possible future policies, practices, and trends in the organization, with the competition, and in the marketplace; understand how these factors influence HR management.

• Uses knowledge of business drivers and how strategies and tactics play out in the market to guide actions.

How do I measure my proficiency level in Business Insights? Questions

Business Insights is a leadership competency. You can refer to the Business Insights Competency Resource Guide for the full assessment scale.

i4cp Lists Business Acumen as a critical skill for HR development. Click here for their development recommendations. I am already advanced in my business knowledge. Will this be useful to me? As with any development, you get out of it what you put into it. If you are indeed someone who can mark all “Talented” in the scale above, reach out to your regional or BU team and see how you can help others learn by being a mentor, organizing additional content, or speaking up during team meetings to share your Business Insights. When you teach, you learn!

Get Started!

There are 5 videos to watch, for a total of about 40’ of learning content. Each video has a Companion Learning Guide to challenge you to go deeper into the concepts and to connect you to additional learning materials. Learning Process

Module 1 Navigate to Module 1 in this guide.

Click the video link to start the video.

As the video plays, complete the reflection activities in this guide. You do not need to answer all the questions on each page!

STOP the video at the end! Otherwise, it will keep playing on to the next video, which may not be the next module in this guide.

Repeat for Modules 2, 3, 4 and 5

Have fun and keep learning!

Behaviors Matters

Showing up with the right behaviors before starting this journey will help you learn more deeply. Here are some tips from our BorgWarner Belief Behaviors to help you show up read to Explore, Learn and Excel in HR!

1. Be Curious! You may already know some of these concepts, but there are always more questions to ask! Stay curious and ask yourself, what else can I learn here? 2. Be Accountable : Put in the work and the effort! You will only grow when you push yourself out of your comfort zone. 3. Be Connected : Many of the reflection questions can not be answered just by watching the videos. You are encouraged to reach out to others and get their insights and perspectives. Connect to new people through this process!

Be BorgWarner

Learning is great,

Before you start your learning journey, plan for development first.

Learning focuses on acquiring new knowledge. Development focuses on using that knowledge to do something different.

What are the steps to Development?

• Assess your current state using the Business Insights self assessment in the Business Insights Competency Resource. It is even better if you get feedback from your manager or peers on what they see in your actions too.

• Identify what gaps you want to close.

• Make use of the 70/20/10 philosophy to structure your development plan. 10% of your actions should focus on formal learning. 20% should be focused on continued feedback from peers, managers, mentors, direct reports, etc. 70% should be focused on doing something differently.

but development is better!!

Is there any thing to help me?

OF COURSE! • Individual Development Plan template – this can help you structure a robust 70/20/10 development plan • The 70/20/10 Guide can help you brainstorm activities in the 70, 20 and 10 categories. • Your BU talent team – Talent Director and Learning Specialist are great resources! • Drive Your Development: Development Plans class

Anything else I should consider? Remember to put your development plan into Workday!

Module 1 Business Environment 1 2 4 3 Start the video for this module

Flip the pages of this guide to follow along with the video

Give yourself time to reflect on the questions asked and explore the additional resources in the guide

Make sure to stop the video at the end, or it will auto play into a new topic.

Program Note

For the first 1 min 18 seconds, the video shows you the overview of this module and several others. Remember, these 5 videos are part of a boarder video series that helps prepare a person for Senior Human Resources Professional Certification from HCMI. Feel free to fast forward to 1’ 18” Use this learning module as an opportunity to explore AI as a learning and development tool! Get creative on the prompts you use to ask questions about concepts you may not yet understand.

Spark Learning has an embedded AI Assistant you can use too!

Course Navigation – Remember, you can change the speed of the video using the gear button. You can also add s ubtitles to the video in different languages. Click the button, then choose your Caption Language

Fast forward the video to begin your learning at 1’ 18”

Economic Sectors

Which of the four sectors does BorgWarner fall into? How does this connection influence our operations and business methodologies? What potential changes could occur if BorgWarner were located in a different country? How does BorgWarner balance profit generation and ethical business practices?

BorgWarner is an American-owned corporation that functions in accordance with US regulations and frameworks.

Standard & Poor’s 500

In which sector would BorgWarner belong? What other companies are in that sector? What is our current stock price and why do we care? What are 3 things that impact stock prices? What measures does BorgWarner take to maintain stockholder confidence and stock market stability?

BorgWarner is a publicly traded company based in the United States and has been a member of the S&P 500 index for many years. KEEP IN MIND – Utilizing CoPilot can be incredibly helpful as you consider the reflection questions!

BorgWarner Bonus! : Learn more about BorgWarner!

BorgWarner Investor Page

Industry Life Cycle

What stage of the life cycle curve is your site in, and what evidence supports this? Are any changes anticipated? Which business units or locations are at different stages? How does your site's life cycle position impact HR functions such as recruitment, employee engagement, retention, compensation, and policy development? Are there any upcoming industry disruptions that could put BorgWarner or your site into a new phase of the life cycle?

Connection Challenge : Contact the HR team of a different site. Exchange insights regarding the stage of the industry life cycle that each site is currently in, and analyze the similarities and differences in HR strategies and practices influenced by these life cycle stages.

Summary

o What is one new thing you learned?

o What is one new thing you will put into practice?

o What is one new thing you are interested in learning more about?

o How does this align with the development plan you set?

BorgWarner Bonus! : Learn more about BorgWarner!

BorgWarner Automotive Investor 2025 Automotive Light Vehicle Market Summary

Module 2 Business Elements 1 2 4 3 Start the video for this module Flip the pages of this guide to follow along with the video Give yourself time to reflect on the questions asked and explore the additional resources in the guide Make sure to stop the video at the end, or it will auto play into a new topic.

Environmental Sectors

In BorgWarner, these factors are often managed by different functions.

What factors affect your position?

For aspects not directly tied to your role, who at your site monitors them more closely? Are you aware of their duties? How do you collaborate with other functions to ensure the workforce is prepared for industry shifts?

Connection Challenge : Make a new friend at your site! Consider your current network. Find one function that you do not understand well yet and go learn more! Here are some suggestions to get you started:

PRODUCT & MANUFACTURING ENGINEERING Ask: What are the key products we make now? what changes are we expecting in the future? Ask: what is the most difficult piece of equipment to maintain at our site? OPERATIONS Ask: which product lines make the most money? Which make the IT What type of IT projects are planned? What IT infrastructure is working well, what likely to become significant in the next 3-5 years? least? Which operations are

CONTROLLER Ask: what the three most important financial metrics for your site? Spend a few meetings getting to know the calculations, the plant’s current state and what can be done to maintain or improve them. PLANT MANAGER Ask what is the site’s long range plan (LRP)? What is the process for creating the LRP? What are the inputs and outputs of this process? • LOGISTICS Ask: how do parts get to, through and from our site? How many shipments a day does our logistic team have to deal with?

GSM Ask: who are our biggest suppliers? What are the main issues we have with them – Cost? Delivery? Quality? What is the biggest supply chain risk our site has now?

01.

02.

03.

PROGRAM MANAGEMENT What is the current customer portfolio? How do we track

05.

04.

06.

QUALITY Ask: what is the biggest quality concern facing our site? When was the last time there was a warranty spill? profitability for each program? What new customers are we hoping to win?

08.

07.

09.

needs to be optimized?

External Business Elements

What cutting-edge technologies or features does your site or business unit offer? Check the BorgWarner Technology Website for a full list of our products! How are your competitors adapting? How is your customer demographic changing? What strategies do you employ to stay updated on these trends?

BorgWarner Bonus! : Learn more about BorgWarner!

Technology website

Structural Business Elements

What technology underpins your website, including IT infrastructure and security? How do you ensure safety in shipping areas? What tools improve employee communication? Additionally, what other technologies exist, and how do they impact human resources? How familiar are you with the Global Strength resources in your unit or the wider organization? Who are the key contacts, and are there any noteworthy individuals deserving recognition? Explore LA/GS eLearning.

What key processes exist in your organization? Look beyond production to include how goods are received, how finished products are shipped, how invoices are processed, and how customer complaints are handled. Also, consider the role of the Human Resources department in these processes.

Summary

How would you assess your understanding of the business components related to your website? To your business unit? To BorgWarner?

What steps will you take to continue expanding your knowledge?

BorgWarner Bonus! : Learn more from i4cp!

4 Steps to Enable HR to Support an Agile Business

Module 3 Business Competition 1 2 4 3 Start the video for this module Flip the pages of this guide to follow along with the video Give yourself time to reflect on the questions asked and explore the additional resources in the guide Make sure to stop the video at the end, or it will auto play into a new topic.

Business Competition Defintion:

Who are BorgWarner’s biggest competitors in the automotive and technology sectors?

What information do you currently have regarding Business Competition?

Generic Competitive Strategies

Which of the following strategies aligns most closely with your site's approach? In what ways does your site's competitive strategy affect your human resources decisions? BorgWarner employs a competitive strategy of Product Leadership . Which of these four strategies is most similar to a product strategy? Additionally,

how does it differ from a differentiation strategy?

HINT…consider utilizing AI to assist in exploring the answers to these queries!

BorgWarner Bonus! : Learn more about BorgWarner!

Articles on Product Leadership: Product Leadership | Overview & Strategy | Examples Product leadership - Top of mind - comma, brand strategists

Behavioral Forms of Competition

Where can we see positive competition for labor, and where is competition harmful for attracting talent?

How does this impact your talent acquisition and HR

strategies? Additionally, what does competition for resources look like in your area, and what are its benefits and drawbacks? What role does HR play in acknowledging these conditions and driving change, and how does this affect the organizational culture?

Competition is everywhere, not just our external customers! Think about

competition for labor within your city and community.

Summary

What article did you find most captivating during your research on completion? What is one pledge you will take as a result of your reflections?

BorgWarner Bonus! : Learn more from i4cp!

HR Business Planning Discussion Guide

Module 4 Business Stakeholders 1 2 4 3 Start the video for this module Flip the pages of this guide to follow along with the video Give yourself time to reflect on the questions asked and explore the additional resources in the guide Make sure to stop the video at the end, or it will auto play into a new topic.

Business Stakeholders Defintion:

Create this chart in your notebook to use throughout this module.

Stakeholder

Internal/External

Power & Interest

Management Strategy

Add more rows as needed

Key Stakeholders

o Brainstorm your list of stakeholders.

o Cover all the categories mentioned in the graphic above. o Put all the stakeholders into the table you drew in the prior page.

HR Stakeholders

Are there any more stakeholders you need to add to your list? Mark each one as an internal or external stakeholder. CIRCLE the 2 that get the most of your attention? UNDERLINE the 2 that need more of your attention What will you gain through that relationship? Who can help you get started?

Stakeholder Analysis

Go back to your chart and evaluate your stakeholders using this analysis. Are there any who are high power, high interest (Manage Closely) where you need to improve your relationship? Are there any with low power and low interest that are getting too much of your time? What is your communication strategy for each stakeholder? Is it working?

BorgWarner Bonus! : Learn more from i4cp!

Strategy Execution Toolkit

Summary

Refer to the 2024 Sustainability Report to examine the wide range of stakeholders that BorgWarner interacts with, including community organizations, regulatory bodies, and environmental groups.

Taking care of all stakeholders is important to your success in HR.

What is one action you commit to take following this lesson?

BorgWarner Bonus! : Learn more about BorgWarner!

2024 Sustainability Report: Driving Progress

Module 5 Financial Management 1 2 4 3 Start the video for this module Flip the pages of this guide to follow along with the video Give yourself time to reflect on the questions asked and explore the additional resources in the guide Make sure to stop the video at the end, or it will auto play into a new topic.

Financial Management Overview

This section has a lot of math and a lot of terms!

Remember, you do not have to be an expert in finance, but you need to understand the health and future of the business in financial terms.

Accounting Vocabulary

• What common phrases do you hear in meetings, and how many do you fully understand? What are the shorthand or acronyms for these? • Schedule a meeting with your accounting colleague to discuss the three key accounting metrics used at your site. Remember, these metrics are a subset of the larger category of business metrics, so focus on accounting metrics for now.

Budget Strategies

Strategic Budget: What expenses are allocated for strategic initiatives on your site? How does HR affect the budgeting process and criteria for selection? For strategic projects not directly managed by HR, what HR strategies and practices should be considered as the project progresses? For instance, if a budget is set for new production equipment, what will be the implications for staffing, training, promotions, and safety protocols?

Operational Budget: What is your organization's operational budget? What is your site’s labor cost as a % of sales? How can it be improved? Discuss this with a colleague. How does HR impact the operational budget through decisions like salary increases, added employee benefits, and training programs? Consider HR's role in shaping the budget for important priorities.

Types of Budgeting Methods

BorgWarner utilizes these strategies in different ways. Earnings calls often highlight our performance against historical data. The Long-Range Planning (LRP) process generally combines top-down and bottom-up budgeting methods, aligning with the Parallel budgeting approach. Also, zero based budgeting is being specifically focused on in some Business Units (BUs).

How does the HR department participate in Long-Range Planning (LRP)? What elements of the HR budget are influenced by a bottom-up approach, and what processes inform those choices? Which budget items are determined by a top-down strategy, and how does this impact your overall strategy and operations? What implications would arise from shifting to Zero-Based Budgeting (ZBB) from a historic-based budget? Keep in mind that AI can be a valuable tool for exploring these concepts further!

Income Statement

Are you familiar with the elements that are included in and excluded from an income statement? How can you determine whether a business is performing effectively or not?

Connection Challenge : reach out your site’s finance team and ask them to review an Earnings Call process with you.

Balance Sheet

What sets a Balance Sheet apart from an Income Statement? Connect with the finance team to learn how each document is used at your site and during earnings calls. Which of these documents does your plant manager or VPGM consult for insights on the business's status?

Cash Flow

Review the following resources: • 2024 Annual Report – The cash flow statement is on page 47, and margins for 2022, 2023, and 2024 by business unit begin on page 46. • Investor Calls – Listen to past quarterly calls or register for upcoming ones to discuss our financial performance.

As BorgWarner is a publicly traded company in the United States, we are required to fulfill various obligations regarding the reporting of our financial status.

BorgWarner Bonus! : Learn more about BorgWarner!

2024 Annual Report Investor Calls

Summary

• Sound financial management is vital for successful business partnerships. Developing a strategy for ongoing learning is essential. Explore the BorgWarner eLearning – Driving Financial Effectiveness • Furthermore, it's necessary to understand a range of business metrics beyond just financial ones. Identify the relevant EIP metrics for your site and consult a Subject Matter Expert (SME) for clarification. Knowing how these metrics are calculated and their relationship with HR strategies is important.

BorgWarner Bonus! : Learn more about BorgWarner!

BorgWarner eLearning – Driving Financial Effectiveness

Closing

This guide and these reflection questions are just the beginning! Keep learning, keep growing and keep developing your skills.

Additional Resources

Business Insights Competency Resource Guide

Business Insights Competency Resource Guide

Customer Focus Competency Resource Guide

Customer Focus Competency Resource Guide

Balances Stakeholders Competency Resource Guide

Balances Stakeholders Competency Resource Guide

Financial Acumen Competency Resource Guide

Financial Acumen Competency Resource Guide

Other Resources

Additional Resources

Driving Financial Effectiveness eLearning

Driving Financial Effectiveness eLearning

Full SHRM Senior Professionals Human Resources Prep Class

Full SHRM Senior Professionals Human Resources Prep Class

Individual Development Plan Template

Individual Development Plan Template

Feeback? Typos? Broken Links? Suggestions? Praise? Let us know!